Michigan FY 2026 GF Revenues Estimate Down By $ 1 Billion

The Michigan Consensus Revenue Agreement Executive Summary presented on January 16, 2026 finds FY 2026 General Fund revenue will be lower by $ 980.5 million than was anticipated in the May 2025 forecast.  FY2027 will be worse, but that estimate is far into the future and therefore less valid.  The money shot is Table 2, at the top of the third page.

There will be a lot wrangling in Lansing during the coming days as a result.  That wrangling will undoubtedly begin well before Gov. Whitmer's February 25th State of the State speech:

https://wwmt.com/news/michigan-politics/michigan-fiscal-agencies-11-billion-dollars-state-revenue-2027-government-politics-economy-funding-money-lawmakers

https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/ORTA/Consensus-Revenue-Estimating-Conference---CREC/FY-2026/Jan-2026-CREC-Docs/Forecasts-and-Summary/Consensus-Executive-Summary-Final.pdf

Michigan fiscal agencies predict $1.1 billion dip in state revenue for 2027
By Remington Hernandez | January 16, 2026

LANSING, Mich. — Michigan is set to bring in significantly less revenue in 2027, according to an assessment from all three state fiscal agencies in a joint report.

The report is called a Consensus Revenue Estimate, and it's typically the beginning of the budget process.

The two fiscal agencies in the Legislature and the State Treasury under the Governor come together and compare numbers, settling on one set of predictions.

The consensus revises the previous estimates for 2026 and 2027, now showing general fund and school aid revenues are $779.4 million lower than expected this year. Next year, the gap grows to $1.09 billion.

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The Whitmer Administration blames changes at the federal level, which put more responsibilities on states.

"We've taken some important steps to mitigate that damage here in our state," State Budget Director Jen Flood said. "But it's going to continue to apply pressure to the state budget for fiscal year 27 and beyond.”

Estimates are based on the most recent economic projections, and the numbers will be used by the governor and lawmakers to formulate their budget proposals.

The administration wouldn't say whether cuts were on the table, but alluded to the rainy day fund as an option to boost funding.

"Michigan's economy is stable. Our foundation is strong," State Treasurer Rachael Eubanks said. "That stability gives us confidence as we plan for the future and continue making disciplined decisions to keep Michigan moving forward."

Legislative republicans have long championed cuts.

State House Speaker Rep. Matt Hall (R-Richland Township) feels vindicated by the consensus estimate.

"The state government is gonna have to start tightening its belt, making priorities, and getting better value out of your dollars," Hall said.

Hall says State House Republicans already identified $5 billion in what he labeled "waste, fraud and abuse," and he says much of it still needs to go.

"We got to cut the ghost workers. We've got eliminate these wasteful grant programs including the corporate giveaways," Hall said. "I think we'll be able to put together a budget another budget smaller than the one before."

Democrats, though, say there needs to be a smart approach to the budget, and they're keeping options open.

"We're not gonna just say cuts for the sake of cuts, we should exhaust every option we have first," Rep. Alabas Farhat (D-Dearborn), Minority Vice Chair of the House Appropriations Committee said. "That means looking at programs that can be modernized that maybe we no longer need. That means, yes, making some smart cuts, but it does not mean just right away one billion dollars out of the budget."

Farhat also said Michiganders should be the main consideration when formulating the budget.

"The State of Michigan right now is looking at its budget and making tough decisions," Farhat said. "Families across the state are making those same decisions, and so how can we make it easier for them?"

Flood said the governor's proposal is just weeks away, setting the stage for what could be another contentious budget fight, as seen in 2025.

Still, all sides are hopeful a proposal will pass by the June 30 deadline.